Mortgage Rates Steady, Awaiting Fed's Annual Meeting in Jackson Hole

Mortgage rates held steady this week and remain almost exactly where they stood a month ago, failing to deviate from the narrow 20 basis point band in which they’ve vacillated throughout much of the summer. Continuing the tradition of a quiet end to August, there was little major economic news these last seven days, and rates did not react strongly to subtle changes in the bond market, weak existing home sales data and headline news.

This inertia may have been driven by the financial markets anticipating events occurring later this week: The Federal Reserve Bank of Kansas City’s annual Jackson Hole meeting, which opens Thursday, could signal monetary policymakers’ longer-term outlook for the U.S. and global economies. Fed Chairman Jerome Powell is giving a speech at the meeting on Friday, in which he is expected to offer more detail regarding expected interest rate hikes.

Financial markets will also likely be paying unusually close attention to new home sales data, which will be released Thursday. Releases like these don’t typically move the market. However, existing home sales numbers, which were released this morning, fell well short of expectations, so more disappointing figures could place downward pressure on mortgage rates.